02:00 PM EDT, 04/22/2024 (MT Newswires) -- (Updates prices.)

Gold traded sharply lower midafternoon on Monday as geopolitical worries ease, cutting the need for the metal's safe haven.

Gold for June delivery was last seen down US$66.80 to US$2,347.00 per ounce, dropping off a record close of US$2,413.80 on Friday.

The drop comes as worries war would spread in the Middle East faded after Israel offered a restrained response to Iran's missile and drone attack earlier this month, while investor risk appetite is slowing ahead of Friday's release of US PCE data, the Federal Reserve's preferred inflation measure.

"Gold made a couple of failed attempts above $2,400 last week, potentially signaling a short-term top followed by an overdue period of consolidation," Saxo Bank noted.

The ICE dollar index was last seen down 0.3 points to 106.13.

Treasury yields edged down, with the US two-year note last seen paying 4.976%, down 2.3 basis points, while the yield on the 10-year note was down 0.2 basis points to 4.624%.